The 36-year-old defender, in the second spell at his home-town club, has not featured since sustaining a knee injury against St Johnstone in August.
It was revealed at Aberdeen's player of the year dinner that he will hang up his boots but will not be departing Pittodrie, taking a commercial role at the club.
Anderson told RedWeb: "It was announced this evening that I am retiring from playing at the end of the current season but will be remaining at the club in a role behind the scenes.
"It's obviously a huge wrench to stop playing, and a decision that has not been taken lightly, but the time just felt right.
"I would like to thank the fans for their fabulous support during both of my spells at the club. It really is hugely appreciated.
"While nothing will ever beat playing, the fact I'm being given the opportunity to remain with the Dons is definitely the next best thing and I'm really looking forward to the next chapter of my career."
Source: Yahoo/PA Sport
Image: RedWeb